Alibaba and Baidu Increase Cloud Prices Amid AI Demand Surge

Cloud computing giants Alibaba and Baidu are raising prices for select services, reflecting a broader trend among major players responding to escalating demand for artificial intelligence and the associated infrastructure costs. The price hikes, ranging from 5% to 34%, signal a significant shift in the cloud market as companies invest heavily in AI capabilities.

Price Adjustments and Effective Dates

Starting April 18, 2026, Alibaba Cloud will increase prices on services utilizing its AI chips, including the T-Head Zhengwu 810E, by 5% to 34%. The price of Cloud Parallel File Storage will rise by 30%. Baidu Cloud will similarly increase the price of its AI computing power-related services by 5% to 30%, with its parallel file storage system also seeing a 30% price increase, effective the same date.

The Rise of AI Infrastructure Costs

The price increases follow similar moves by American cloud providers earlier in the year, indicating a global trend. Demand for computing power has surged due to the intensifying global AI race, prompting major infrastructure players to announce increased strategic investment in the field over the next three to five years. This increased investment is now being reflected in service pricing.

Alibaba’s AI Chip Strategy: The Zhengwu 810E

Alibaba’s price adjustments are closely tied to its advancements in AI chip technology. The company unveiled the T-Head Zhengwu 810E in late January 2026, positioning it as a competitor to Nvidia’s H20 and even, in some upgraded versions, the A100 [ChinaBizInsider]. The Zhengwu 810E is already deployed in Alibaba Cloud infrastructure and has been adopted by over 400 enterprise clients, including XPeng and the State Grid Corporation of China [ChinaBizInsider].

Tencent Cloud Adjusts AI Model Access

Further illustrating the changing landscape, Tencent Cloud ended its limited-time free public beta for its GLM 5, MiniMax 2.5, and Kimi 2.5 models last week, signaling a move towards monetization of its AI model offerings.

Industry Analysis

Cui Tingting, a research manager at IDC China, described the price increases as “a reasonable response to evolving market conditions” [South China Morning Post].

Key Takeaways

• Alibaba Cloud and Baidu Cloud are increasing prices on select services by up to 34%.
• The price hikes are driven by rising demand for AI and increased infrastructure costs.
• Alibaba’s Zhengwu 810E AI chip is a key component of its strategy to compete in the AI market.
• Tencent Cloud is moving away from free access to its AI models.